To regulate the subsoil use sector, implement EU Directive 94/22 and other European Union legislation in pursuance of the Association Agreement.
Replacing ineffective and overlapping regulations and creating a comprehensive document that will regulate all types of subsoil-related economic activities, including the extraction of minerals, oil, gas, uranium, as well as subsoil water and geothermal energy.
New Subsoil Code of Ukraine
Today, the subsoil use regulation is carried out with the help of an extensive system of regulatory acts, which are often inconsistent with each other. Unnecessary, outdated, and burdensome procedures and permits should be canceled.
It is necessary to create a comprehensive document that will regulate all types of subsoil-related economic activities, including the extraction of minerals, oil, gas, uranium, as well as subsoil water and geothermal energy. In particular, the new Code provides for:
- state support and issuance of permits without an auction for certain groups of subsoil users;
- the introduction of land reservation;
- the creation of a State Fund for the Mineral Resources Base Development as part of a special state budget fund;
- the creation of E-cabinets for subsoil users, a Catalog of geological information, and an interactive map of minerals;
- the cancellation of exploration permits;
- the possibility of transferring ‘permits’ for use to third parties and the introduction of subsoil use fees if mineral deposits are idle;
- expending a list of minerals of local significance;
- the estimation according to international standards at the subsoil user’s request. Foreign investors will be able to assess the prospects of deposits, and subsoil users — to transfer them for use to investors, if desired.
Why is this essential for Ukraine?
Due to the non-transparent obtaining of subsoil use permits, more than 80% of deposits in Ukraine are not used, and there are significant tax revenue losses. Our country is still energy-dependent due to insufficient exploitation of natural gas deposits. Cheap non-competitive access to subsoil resources lead to the situation when permit holders, who have once been granted the subsoil use right, do not use the deposits keeping them idle ‘for further use’.